The industry is facing an extraordinarily turbulent set of supply chain conditions, intensified by the global pandemic. Costs are increasing and supply is tightening across almost all procurement categories. Three of the most volatile areas include: multiple petrochemical derivatives, such as resins and solvents; pigments; and freight.
Upal Roy, managing director, Flint Group India and South Africa, said, “The current and unusual set of supply chain conditions are some of the most severe that we have witnessed. Our industry is facing substantial cost and availability headwinds, across multiple raw material categories. Resins, solvents and pigments (including Titanium Dioxide), are particularly problematic, as well as freight and packaging costs.”
The group in India and South Africa continues to collaborate with its global supply chain partners to mitigate as many negative effects as possible. However, recent force majeure announcements and the global freight imbalance is impeding some corrective actions and the current situation is not sustainable in the long-term.
“Despite today’s announcement, we are resolutely committed to efficiency projects to negate the adverse supply chain circumstances, wherever feasible. Nonetheless, the magnitude of these increases makes it clear that these activities alone will not suffice,” concluded Roy.